Rising interest rates have been a boon for savers this year looking to make some cash on their nest eggs. On top of the list is Bread Financial , which has a 5.15% annual percentage yield, according to Wells Fargo. It’s the only one of its peers in Wells Fargo’s coverage still above 5%, analyst Michael Kaye wrote in a note Friday. Bread Financial is a solely online financial services company based in Columbus, Ohio. The company, formerly Alliance Data, rebranded as Bread Financial in March 2022 with a promise to deliver innovative savings, payment and lending solutions. The rebranding came just as the Federal Reserve began its latest cycle of interest rate hikes, which helped propel yields on savings higher. The average national APY for savings accounts was just 0.06% at the beginning of 2022, according to Bankrate . The central bank meets next week, and Fed Chair Jerome Powell has said speculation around rate cuts is “premature.” However, fed funds futures pricing data suggests a 98.2% probability that rates will remain unchanged at the conclusion of the December meeting next Wednesday, according to the CME FedWatch Tool . Meanwhile, Bread Financial cut the rate for its one-year certificates of deposit this week by 5 basis points to 5.55%. One basis point is equal to one one-hundredth of a percent. Even with the rate pullback, the bank has the highest rate among the institutions Wells Fargo covers. Capital One , on the other hand, hiked its rate by 25 basis points to 5.25%, according to Wells Fargo. It also boosted its online savings account yield by 5 basis points, bringing its APY to 4.35%. — CNBC’s Michael Bloom contributed reporting.
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